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Oscillators

📉 Your Ultimate Guide to RSI Divergence (Settings & Tips) 📈 Hey traders, Relative strength index is a classic technical indicator . It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change . Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tip s: 💠First of all, let's start with the settings . For the input , we will take 7/close . For the levels , we will take 80/20 . Then about the preconditions : 1️⃣ Firstly, the market must trade in a trend (bullish or bearish) with a sequence of lower lows / lower highs (bearish trend) or higher highs / higher lows (bullish trend). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence . A strong counter-trend movement will be expected. Also, I should say something about a time frame selection . Personally, I prefer to apply it on a daily time frame , however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
3
divergence set up - some basic learningwhat is Divergence ? 👇 Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction what is Oscillator ? 👇 An oscillator is a technical analysis tool that constructs high and low bands between two extreme values, and then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover short-term overbought or oversold conditions. how is Oscillator used in Trading ? 👇 Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets. Most traders use multiple oscillators to confirm range extremes and for determining the important entry and exit points. 🛑Indicators for spotting the divergence indicator patterns are the Awesome Oscillator, macd, the RSI, CCI or stochastic.🛑 disclaimer - personal view (can be wrong)
Education
by sankhyainvestments
13
TI ==> Indicator in SBIN NSE In the above picture, you can see the area of the overbought area. but the Aroon didn't indicate that not a problem because TI and RSI indicate the overbought this is my idea: I use a different template in that TI indicates scalping and intraday trades. but it has a problem it can show the overbought. but it will not easy to understand so you can use ADX also here. but I use RSI for clear information many people use MACD but TI is better than MACD because it can also show convergence and divergence of stocks. TI is my own script but it covers more INDICATION. this is my template: volume, Aroon, RSI and TI I use aroon for a very little support only. I recommend you a statergy of paper trade with a overbought indicator(I recommend RSI), Moving Average related indicator(eg:MACD,DMI)(I recommend TI my own script) and your favourite Indicator that is your choice because it is useful for your trading it can be a dummy indicator also but your favourite Indicator. comment for doubts..
NSE:SBINEducation
by tharunkumarmuthu
Gold Spot / USD Dollar(Gold Shining Fading in May)?Gold Spot / USD Dollar (Gold Shining Fading in May) (Gold “The Light Had Faded and Dusk was Advancing) • Gold Spot The Shining of Gold is Fading now means the Light had Started Fading now and Dusk was Advancing in Gold Slowly in the start of Month of May and Will Continuous will go for entire Current Month • Three Time Gold Tried for New Break out from the upper Channel but Unable to do the same • Continuous Rise in the Upper Channel • Volumes Started Decreasing • Momentum also Decreased in the last 10 Sessions • Let See If Equity will Rise Subject to if Slowly Lock downs Will Start Releasing the effect will see on Gold on Negative Side • If Lock downs Opens Slowly then Economy and Industries will rise which will impact Gold Negatively and His Shine will start fading off • Let See? (Finally if you liked the Idea pls provide likes and comments and pls provide suggestion if you something dont like about the idea )
OANDA:XAUUSDEducation
by Ashhish-Chhabra
How to identify Hidden divergence with the help of RSIThis example is bets suited for RSI hidden divergence. We all know double bottom or double top RSi divergence to identify trend reversals. But with the help of Hidden divergence we can find out trend continuation. Lets start !! - On 18 April stock is traded 411 and RSI shows the 51.29 reading . - But it break the support level and fall further. - it again renounce back to 411 level but this time RSI shows 68 levels which close to overbought region . - At present condition we have resistance level 412 also. - So we can Short it with the stop 412 on closing basis . Only Condition is stock has to be in same trend Down or Up See the Past example
NSE:DABUREducation
by b1Chetan
8
APOLLO TYRES || ON A TRICKY TERRAINApollo Tyres on a weekly chart has taken support at levels of 192-193 and has bounce back giving a divergence on the RSI from a oversold region. The MACD also is showing convergence. A major part of the move has already taken place from 193 to 220. What needs to be seen is as to how far would this upward move go with Fibonacci retracements placed at 224.5, 235 (for move from 244.85 to 193). Interestingly 235 was the level from which it gave way and move towards 193 and so it needs to be seen as to how does it behave at those levels. Would be taking a back seat and seeing as to how far would it go before turning around. I would appreciate if someone can put a number to the move and back it up with their explanation on the same.
NSE:APOLLOTYREEducation
by thechama3
4